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Show The recession, high interest rates, the possible demise of the MX race track deployment and high costs of capital have brought dark clouds into Utah's forecast of booming growth says the director of the Bureau of Economic and Business Busi-ness Research at the U. of U. UTAH'S GROWTH rate peaked in July I978 and has been declining ever since, says R. Thayne Robson, a leading economic forecaster in the state. A few months ago, Utahns were being cautioned to prepare pre-pare for high rates of growth, Robson points out. but now it appears changing economic conditions have reduced growth in Utah to a very low level. "Instead of dealing with high rates of growth we will be dealing with very low rates of job opportunities in Utah," he notes. THE RECESSION and the change in the White House have made a difference in Utah's future growth rate, according to the economist. "Several months ago there was a high probability that the MX system would be deployed in Utah. But the change in administrations adminis-trations means the country, may have a different defense policy. MX will be built, but it may be deployed in the already existing Minute Man silos which would eliminate the race track option in Utah and Nevada Neva-da valleys," Robson adds. ROBSON SAYS with the changes in MX and expected delays in the $8 billion, 3,000-megawatt 3,000-megawatt Intermountain Power Pow-er Project to be built in Central Utah, growth in the state "has almost ceased." Utah's expected boom in energy development will also be affected, he predicts. "The high interest rates and captial shortage in this country will affect not only defense budget and military spending but energy ener-gy development as well. The cost of capital is a major item in energy development." BECAUSE interest rates are high and will remain high, Rob-: son says prospective energy projects will be affected in two ways. "First, it's probably going to cause the projects to be scaled down, and second, it's likely to cause some delay in getting the projects financed and underway," he says. |